- As Bitcoin miners are operating on paper-thin margins, there’s a greater possibility of a BTC sell-off in the coming days.
- On the other hand, Bitcoin whales have been showing conviction with strong accumulation last week.
The world’s largest cryptocurrency Bitcoin (BTC) has remained steady close to $19,200 over the last few weeks. While BTC tried to give a few breakouts above the $20,000 level, it couldn’t sustain there for a long time.
However, Bitcoin miners have been once again facing some challenges with the rising hashpower. The Bitcoin hashrate i.e. the computational power required to add new BTC to the Bitcoin blockchain has been on a rise. Note this increases the cost of production thereby putting additional stress on the Bitcoin miners.
On-chain data provider Glassnode recently reported that the Bitcoin hash price has touched a new all-time low. Hashpriceis a Bitcoin mining metric that represents the miner revenue on a per terahash basis. It notes:
The #Bitcoin Hash Price has reached an all-time-low of $66,500 per Exahash. This means that $BTC miners are earning the smallest reward relative to hashpower applied in history, and likely puts the industry under extreme income stress.
Courtesy: Glassnode
This clearly shows that mining BTC at the current price leaves Bitcoin miners with paper-thin margins. Thus, it makes it increasingly difficult to hold on to their existing BTC supply and increase the chance of selling. If the BTC miners once again go on a selling spree we can see major price corrections in Bitcoin going ahead.
Earlier this year, some of the top Bitcoin mining sold in huge quantities to meet their operational costs. This was during the May-June period when the BTC price was under a free fall. A repeat of the same could probably take Bitcoin lower to $14,000.
Bitcoin technical charts and whale conviction
As of press time, Bitcoin is trading 1.20 percent up in the last 24 hours at a price of $19,370 and a market cap of $372 billion. Based on the technical chart, popular crypto analyst Michael Van de Poppe explains: “Bitcoin Needs to crack resistance at $19.6K, and then we’ll start the run towards $20.7K and potentially higher. The Dollar and Yields showing some slight weakness today”.
On the other hand, Bitcoin whales and long-term holders have been showing great conviction. Last week CryptoQuant CEO Ki Young Ju stated that whales have been accumulating BTC in huge quantities on Binance. He noted:
Whales are accumulating $BTC in #Binance. Since #Bitcoin price hit the $20k level, @Binance spot trading volume dominance skyrocketed, and it’s now 84%. The second biggest is Coinbase, 9%. Not sure whether these whales are institutions using prime brokers or crypto OGs for now.
Also, last week, more than 40,000 Bitcoin were reported moving off-exchanges in a huge institutional accumulation. On the other hand, Bitcoin HODLers are exhibiting diamond hands and holding on to their supply.
Popular crypto trader Will Clemente noted: “A new all-time high 78% of Bitcoin supply has not moved in at least 6 months. Pretty remarkable in the face of the worst macroeconomic backdrop in recent history, geopolitical uncertainty, and WW3 fears. There is a group of seriously convicted HODLers out there”.
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